Nationwide down-valued, where next?

chistery

Tying to buy a shared ownership property and Nationwide have down-valued it, as they are basing the valuation on the resale price, and not the new price, as it's a new build. I can't find the extra money, so need to either pull out or find a new mortgage offer. Any suggestions as to places that tend to value at the market value and not the resale value?

TIA.

JimmyTheWig

The mortgage company will lend you money to buy a property on the basis that if you don't pay them back they will sell the property and get their money back. That's the only reason they care about the value of it.
So I would imagine that any mortgage company would look at the resale value of the property rather than the new-build price as, if they ever need to sell it because you haven't been making your repayments, they will be re-selling it rather than selling a new-build.

chistery

The HA say they haven't had this from other people trying to buy, just mine from Nationwide. Nationwide also have updated their policy to not send you a copy of the valuation. Just wonder if it's worth spending more money on another mortgage to find possibly the same thing. :mad:

harz99

JimmyTheWig wrote: »

The mortgage company will lend you money to buy a property on the basis that if you don't pay them back they will sell the property and get their money back. That's the only reason they care about the value of it.
So I would imagine that any mortgage company would look at the resale value of the property rather than the new-build price as, if they ever need to sell it because you haven't been making your repayments, they will be re-selling it rather than selling a new-build.

In the above context you really need to insert "quick" in front of resale value - the lender would not wish to wait forever for their money if they had to foreclose, and shared ownership properties are notoriously difficult to resell.

harz99

chistery wrote: »

The HA say they haven't had this from other people trying to buy, just mine from Nationwide. Nationwide also have updated their policy to not send you a copy of the valuation. Just wonder if it's worth spending more money on another mortgage to find possibly the same thing. :mad:

Going back to the HA and asking them to give you the name of the lender whom they are referring to would be a good start.

kingstreet

More than likely Leeds BS. Nationwide and Leeds are only real competitors for Shared Ownership business, although Halifax does offer products but only with 10% deposit IIRC.

Leon_W

Who suggested Nationwide ?

From their criteria..........

" In some areas of the country, heavy investment and development has led to a large supply of new properties. This, combined with falling property prices, more buy to let activity and developers' incentives has led to difficulties in assessing the true value of these properties as new homes for owner occupation.
As a result, Nationwide instructs it's valuers to value all new properties (flats, houses and maisonettes) as if they have already been occupied and are being resold for the first time."

Hence I would never recommend Nationwide to a client for a new build property as you're just setting yourself up for a fall. It's not like they are hiding from it as it's all there in black and white, it's just the way they see the market. New houses are like cars at the moment, as soon as it's been occupied it's worth less.

chistery

I have 25% deposit. I've asked the HA who else others are using, and waiting for the reply. Thanks for everyone's help.

chistery

Thanks Leon. My broker showed me a list of mortgages I could get, and as I bank with Nationwide already and happy with them, I stuck with them, thinking it would help but if I'd have seen the criteria you posted, I would have gone elsewhere.